A City of Johannesburg Speech by Cllr Herman Mashaba, Executive Mayor
RE: NERSA’s 9.41% tariff increase to Eskom rewards corruption
07 March 2019
Release: Immediate
I have noted today’s decision by National Energy Regulator of South Africa (NERSA) to grant Eskom a hike of 9.41%, 8.1% and 5.2% for the next three financial years, below Eskom’s application for a 17.1 % hike for 2019/20, 15.4% for 2020/21 and 15.5% for 2021/22.
The City, amongst many other stakeholders across the country, had made representations to NERSA, stressing the concerns held by our residents and businesses in respect of the then proposed tariff increase. Around 45.2% of our residents exist, barely surviving, below the poverty line. Just over 900 000 of our residents are unemployed and the national economic growth outlook remains depressed.
Given the poor state of the national economy and the massive corruption at Eskom itself, the City, on their behalf of our residents, had argued that the proposed tariff increases were simply unacceptable.
While the City is appreciative of NERSA’s willingness to hear the voice of our residents, businesses and all South Africans at large, it is still our
view that the present increase serves only to reward maladministration and corruption which has gutted Eskom.
This is made worse when one considers the deteriorating economic conditions faced by all South Africans, as evidenced by rapidly rising costs of living. For the poorest members of our society, life is set to become that much harder as a result of this increase. In addition, the rise in tariffs will
also continue to place struggling businesses under strain, hampering the prospects for economic growth.
Ultimately, we hope that NERSA will do all within its powers to ensure that serious reforms are implemented at Eskom; reforms which will cut costs and end corruption once and for all at Eskom.
This includes applying consequence management for those who have been responsible for the mass mismanagement looting at the organisation.
Those who are up to their knees in corruption must face the full might of the law, including getting the money stolen from the entity returned to South Africans.
Cllr Herman Mashaba
Executive Mayor
City of Joburg
Media enquiries:
Luyanda Mfeka
Director: Mayoral Communications
Office of the Executive Mayor
Cell: 076 171 5978
Email: [email protected]
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